Past PressPress
MKF RESEARCH AND NEW VINE LOGISTICS TO PARTNER
to Conduct Wine Industry’s First Comprehensive Consumer-Direct Research Project
MKF Research/New Vine Logistics 2006 Direct Sales Project to Provide the Most Detailed Analysis of the Direct Sales Channel
November 1, 2006
NAPA, CA – November 1, 2006 – MKF Research, a leading research source and business advisor to the U.S. wine industry, and New Vine Logistics, providers of the wine industry’s first comprehensive consumer-direct fulfillment solution, today announced a comprehensive survey of the consumer-direct segment of the market. The project will survey both consumers and wineries, using the findings to develop an in-depth analysis, which will be published annually, The report, entitled The MKF Research/New Vine Logistics 2006 Direct Sales Project, will be supplemented every quarter by The MKF Research/New Vine Logistics Winery Direct Index, which will aggregate consumer-direct data and provide an ongoing pulse to track market trends. MKF Research will also provide consumer direct performance benchmarks to help wineries grow profitability in their consumer-direct operation centers and Best Practices Workshops.
In 2005, the Supreme Court ruled to support interstate wine shipments directly from wineries to consumers, opening the door to new markets in the consumer-direct channel. MKF Research is surveying wineries and consumers, providing a comprehensive analysis of the channel, including accurately measuring its overall size and determining the effectiveness of current consumer-direct programs. This study will be the first comprehensive survey of winery consumers that also assesses how they value these experiences. New Vine Logistics is helping to promote the survey, encourage participation and advise on the findings. Winery specific data used in the project will remain confidential.
The objectives of this first-of-its-kind project are:
- Identify the best practices of a successful consumer-direct program.
- Provide benchmarks for measuring winery performance and helping them grow their consumer-direct profit operation centers.
- Identify key success factors for consumer satisfaction.
- Provide informed and validated measures of the size of the direct sales market and its growth in its four major channels: tasting room, wine club, mailing list and e-commerce.
“Many wineries have experienced considerable growth in the consumer-direct channel since the 2005 ruling, while others are just beginning to incorporate consumer-direct strategies into their business plans,” said Barbara Insel, Managing Director, MKF Research LLC. “Due to the disparity of activities in this channel, we still aren’t sure of its exact size. However, by surveying a representative sample of wineries and customers, we can finally provide the industry with an accurate overall snapshot of the current consumer-direct landscape and help wineries make informed decisions when creating and implementing, or fine-tuning their own consumer-direct strategies.”
The quarterly release of the MKF/New Vine Logistics Winery Direct Index will supplement the annual report. The index will provide timely statistics and trends in the consumer-direct channel, by consistently aggregating data across the following categories:
- Number of shipments by state
- Varietals shipped
- Number of bottles per shipment
- Tasting room vs. wine club sales
“The annual report and quarterly index work together to provide the industry with a much-needed, ongoing source of current information on the consumer-direct channel,” said Kathleen Schumacher-Hoertkorn, CEO, New Vine Logistics. “We’re teaming with MKF Research to provide a reliable, comprehensive source of information that helps wineries understand the potential of the direct channel and how to maximize sales through it.”
The research methodology includes:
- Online survey of wineries’ practices. Participating wineries will receive discounted prices on the full report and reduced fees for customized benchmarking, as well as for the Direct Sales Best Practices Workshops to be held in several regions of California this winter.
- Focus groups of winery direct sales customers to help define the issues to examine in the consumer survey. Rich Boone, MKF Research’s Consumer Research Specialist, will conduct the focus groups containing a sample of winery direct customers drawn from participating wineries.
- Online survey of winery direct sales customers to gain a better understanding of the motivations, demographics, behavior and preferences of winery direct consumers.
The project is beginning in California in early November and will be extended to markets across the country in the following years. A select sample of California wineries will be sent invitations to participate in the survey. Data collection will be followed by a series of Best Practice Workshops for winery management and for direct sales managers, integrating the findings of the surveys. The workshops will be held in January 2007 at locations in California’s North and Central Coasts. The final report will be issued at the conclusion of the workshops and provide detailed analysis and guidelines, based on findings from the surveys and focus groups.
The first annual MKF/New Vine Logistics 2006 Direct Sales Project will be published in January 2007 and the inaugural MKF/New Vine Logistics Winery Direct Index will be released the same month and represent data from Q4 2006.
About MKF Research
MKF Research, a Division of the MKF Group LLP, is a leading research source and business advisor to the U.S. wine industry. MKF Research is a widely respected independent, third-party research source for wine business and wine market trends, and publishes a variety of industry economic studies and publications. MKF Research also provides confidential consulting on a range of wine business and strategy issues to wine industry enterprises and investors. The company is jointly owned by Frank, Rimerman + Co, LLP, the largest California based accounting and consulting firm, and Global Wine Partners LLC, the only investment bank dedicated exclusively to the wine industry.